On May 21, Hanwha Solutions announced that it recently sold approximately 200 billion won ($130 million) of AMPC received last year. The company plans to continue cashing in on AMPC to enhance liquidity and expedite its financial improvement.
The AMPC program provides tax credit benefits for solar products manufactured in the U.S. Hanwha Solutions receives 7 cents per watt in AMPC for solar modules produced at its Dalton and Cartersville plants.
AMPC can be received as a subsidy or tax credit, with the latter being transferable to third parties. When received as a subsidy, it typically takes over a year from the corporate tax filing date to realize the funds. A liquidity market for buying and selling AMPC rights has also emerged in the U.S.
From 2023 to 2025, Hanwha Solutions expects to receive a total of 1.3 trillion won in AMPC, having already sold 1.13 trillion won ($812 million) worth, including this recent transaction. The company is currently negotiating contracts to sell the remaining AMPC for 2025 by the end of the first half of this year.
In the first quarter of this year, the company received approximately 220 billion won in AMPC. Once the construction of its solar hub, the largest integrated solar manufacturing facility in North America, is completed this year, Hanwha Solutions anticipates receiving AMPC not only for modules but also for cells and wafers, potentially exceeding 1 trillion won annually. The company expects the AMPC receipts from the Cartersville plant to be around 1 trillion won this year.
Lee Jae-bin, head of Hanwha Solutions' finance division, stated, "We will continue to secure stable cash flow through AMPC liquidity and focus on improving our financial structure, solidifying our foundation for long-term growth."
* This article has been translated by AI.
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